William Blair analyst Sebastien Naji has maintained their bullish stance on ALAB stock, giving a Buy rating on July 22.
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Sebastien Naji has given his Buy rating due to a combination of factors that highlight Astera Labs, Inc.’s strong market positioning and growth potential. The company is expected to report impressive second-quarter results, driven by significant growth in AI data centers among hyperscaler clients. This growth is supported by increasing investments in AI infrastructure, which positions Astera Labs to sustain its expansion over the coming years.
Furthermore, despite the stock’s recent 25% increase, there are promising opportunities for further appreciation. Key areas of focus include the revenue growth of the Scorpio P-series, potential design wins for the X-series, and the ongoing success of the Aries business. With shares trading at high price/earnings multiples, the company’s new product launches and robust AI infrastructure investments provide a strong foundation for future value, with a fair value estimate of $140 per share based on a 10-year discounted cash flow analysis.
Naji covers the Technology sector, focusing on stocks such as Nvidia, Oracle, and Marvell. According to TipRanks, Naji has an average return of 25.4% and a 93.75% success rate on recommended stocks.
In another report released on July 22, Jefferies also maintained a Buy rating on the stock with a $130.00 price target.